Parisian Off-Market Real Estate: how to access it?

But what is really a “Off Market” sale ? Why is this method of transaction more and more popular in the French capital? And how can you access it if you are interested? This article aims to unveil these confidential transactions, to explore how they work and to understand why they appeal to so many Parisians. Follow us behind the scenes of Paris' most exclusive real estate market.

What is an “Off Market” sale?

Origin of the concept: history and evolution of “Off Market” sales

The “Off Market” sales are not a recent phenomenon, although they have grown in popularity over the years, especially in big cities like Paris. The origin of this concept dates back several decades, when it was mainly used by an elite looking to sell or buy real estate without attracting the attention of the general public. This type of transaction was particularly popular with celebrities, business leaders, and wealthy individuals who wanted to maintain their privacy and avoid advertising.

Initially, the “Off Market” sales were mostly done through word-of-mouth and personal networks. The sellers entrusted the sale of their property to a limited circle of trusted real estate agents, who carefully selected potential buyers. Over time, this practice became formalized and real estate agents began to practice this discreet market on a regular basis.

With the advent of communication technologies and the internationalization of real estate markets, the “Off Market” sales have experienced a new dynamic. Exclusive online platforms and private investor clubs have emerged, facilitating transactions while maintaining a high level of confidentiality. These modern tools allow real estate agents and for owners to reach a network of qualified buyers without exposing the properties on public markets.

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Today, the “Off Market” sales represent a significant part of luxury real estate market, not only in Paris, but also in other major global cities. They offer an attractive alternative to traditional sales, especially for luxury properties where discretion and exclusivity are essential criteria.

A larger part of the Paris residential real estate market has been affected by the "Off Market" phenomenon since the 2010s, due to the boom in transactions. The phenomenon “Off Market” has left the luxury sector to reach a large number of quality apartments sold in Paris.

How it works: sales process and how goods are marketed

The “Off Market” sales process is characterized by absolute discretion and a rigorous selection of buyers, guaranteeing that only serious and solvent candidates have access to available properties. Here is an overview of this exclusive operation:

Sales process

Property selection: properties intended for “Off Market” are often luxury properties, unique residences or, more simply, beautiful apartments. These properties are selected for their value and their potential to attract buyers who know exactly what type of property they are looking for.

Buyer network: real estate agents have a portfolio of potential buyers, but also real estate hunters who are looking for highly qualified buyers. Real estate agents use their contacts to present properties in a discreet and targeted manner.

Pre-screening buyers: before sharing property details or arranging viewings, agents can pre-screen buyers to verify their financial capacity and their seriousness.

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Preview visits: visits are organized before the property presentation ad goes online. Negotiations are conducted directly between the buyer and seller, with the help of the real estate agent to facilitate a smooth and confidential transaction.

Commercialization of Goods

Real estate agents use their personal and professional relationships to inform potential buyers.

Exclusive platforms : some agencies use private and secure online platforms to list properties. These platforms are only accessible to verified users, adding an extra layer of privacy.

FCI (Federation of Real Estate Hunters) has set up a platform for “Off Market” real estate in partnership with real estate agents from all over France.

Discreet marketing : unlike traditional sales that use omnipresent advertising, the “Off Market” sales marketing is very discreet. Ads are limited to direct communications with pre-selected buyers, ensuring maximum confidentiality.

In short, “Off Market” is based on a secure and exclusive sales process. Each stage is designed to maintain the confidentiality and integrity of the transaction, while effectively targeting an audience of qualified buyers.

Advantages of the “Off Market”: exclusivity, confidentiality, reduction of competition

“Off Market” sales have several distinct advantages that make them an attractive option for many homeowners and buyers, especially in competitive real estate markets like Paris.

Exclusivity

One of the main attractions of “Off Market” sales is their exclusivity. Only a limited circle of buyers and sellers, often selected for their seriousness and financial capacity, are involved in these transactions. This exclusivity allows sellers to target qualified buyers without being overwhelmed by unserious offers. For buyers, this means having access to rare and often high-value goods that are not available on the public market.

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Confidentiality

Confidentiality is another crucial advantage of “Off Market” sales. Owners who want to sell their property without attracting attention can do so without the information being disclosed publicly. This is especially important for celebrities, business leaders, or anyone who wants to maintain their privacy.

Reducing Competition

“Off Market” sales make it possible to reduce competition considerably. This can lead to real estate negotiations more serene and faster transactions. For buyers, less competition means less pressure and a greater chance of complete the purchase on favorable terms.

In summary, the “Off Market” sales offer significant advantages in terms of exclusivity, confidentiality and reduced competition. These advantages make this type of transaction a preferred option for those looking for a discreet and efficient way to sell or buy quality real estate.

Disadvantages of the “Off Market”: limited access and potentially higher prices

Although the “Off Market” sales offer numerous advantages, they also have disadvantages that may deter some buyers or sellers.

Limited access

The main disadvantage of “Off Market” sales is the limited access they offer. Only buyers and sellers who are part of exclusive networks or who have special relationships with specialized real estate agents can participate in these transactions. This can rule out a lot of potential buyers who don't have the connections needed to be notified of available properties. Likewise, sellers may miss out on a large audience of potential buyers, which could limit their options.

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Potentially Higher Prices

Properties sold "Off Market" can be negotiated at higher prices. Because of the exclusivity and discretion of these transactions, buyers are sometimes prepared to pay more for access to rare and unique properties. In addition, the absence of public competition may prevent buyers from comparing prices with other similar properties on the market. For sellers, while this can be an advantage, it also means that only buyers with significant financial resources can participate, which can restrict the number of offers.

In conclusion, although the "Off Market" sales offer considerable exclusivity and confidentiality, they are also associated with dares such as limited access and potentially higher prices. These disadvantages should be considered by anyone interested in this type of real estate transaction.

Characteristics of the Paris market: why is Paris a fertile ground for “Off Market” transactions?

Paris, with its timeless charm and its status as a global metropolis, is a particularly fertile ground for “Off Market” real estate transactions. Several unique characteristics of Parisian real estate market contribute to this dynamic.

Historical wealth and architectural heritage

Paris is renowned for its exceptional architectural heritage, including Haussmann buildings of very high standing, private mansions and apartments overlooking emblematic monuments such as the Eiffel Tower. These prestigious properties attract a high-end clientele, often interested in discreet and exclusive transactions. The uniqueness of these properties makes “Off Market” sales particularly attractive for those looking to buy or sell rare properties without advertising.

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International demand

As a financial, cultural, and tourist center, Paris attracts buyers from all over the world, including foreign investors, celebrities and expatriate professionals. These buyers often seek the discretion and confidentiality offered by “Off Market” sales. International demand is helping to maintain strong pressure on the luxury real estate market, making private transactions even more relevant.

"Off-market" sales are not limited to the luxury market. They concern the sales of all Parisian real estate of good quality for which there is a strong demand.

Competitive Real Estate Market

The Parisian real estate market is extremely competitive, with high demand and a limited supply, especially for beautiful apartments. In such a context, “Off Market” sales allow buyers to bypass the fierce competition of public sales and sellers to target serious buyers without multiplying visits.

Preserving Confidentiality

Many Parisian salespeople, including public figures, business leaders, and wealthy families, want to maintain their anonymity. “Off Market” sales offer an ideal solution to avoid media exposure.

Key figures on the proportion of “Off Market” sales in Paris

The Parisian real estate market, recognized for its dynamics and attractiveness, sees a significant part of its transactions take place “Off Market”. Although by nature these sales are discreet and less documented, some estimates and sectoral analyses allow us to understand their magnitude.

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Proportion of “Off Market” Sales

Although very difficult to assess, we estimate that approximately 10 to 20% of real estate transactions in Paris are made “Off Market”. This percentage may vary between market segments, with a much higher proportion in the luxury and luxury goods sectors.

Value of Transactions

“Off Market” transactions represent a significant value of Parisian real estate market, often concentrated in the luxury goods segment. In 2022, the “Off Market” sales would have represented hundreds of millions of euros in total value, a clear indication of the importance of this method of transaction for high-end real estate. The selling prices of these properties can often be higher than those on the public market, due to the exclusivity and discretion offered.

Buyers and Sellers Profiles

The figures also show that “Off Market” sales attract a specific profile of buyers and sellers. Buyers are mostly foreign investors, public figures, and executives seeking to acquire luxury properties without advertising. Sellers, on the other hand, include wealthy families, celebrities, and owners of historic properties who want to sell discreetly.

Duration of Transactions

“Off Market” transactions tend to close more quickly than traditional sales. Rigorous pre-selection of buyers and the reduction of advertising make it possible to shorten negotiation and sales times. On average, “Off Market” sale in Paris can be finalized in a few weeks.

How to access an “Off Market” property in Paris?

Call on a real estate hunter

A good way to access Parisian "Off-Market" real estate : use the services of a Real estate hunter. Thanks to his network and his contacts (both buyers and sellers or real estate agents), the hunter is able to use his experience and to use his network to find you properties before they are even on sale. In a tense and competitive sector like Paris, being able to position yourself before all other buyers is not a negligible advantage!

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Find out by yourself through word-of-mouth

Positioning yourself on the off-market in Paris is very complicated, but not impossible. Indeed, there is an alternative solution that simply consists in talking to the people around you about your purchase project. Who knows: maybe your loved ones know people who are planning to move soon, or a couple who has just divorced and will probably want to sell their property shortly.

However, the probability of being offered is very low “Off Market” goods under these conditions.

Conclusion on the “Off Market” of Parisian apartments

“Off Market” sales constitute a fascinating and essential facet of Parisian real estate market, especially for luxury properties and high-value transactions. These sales offer a range of distinct benefits, including exclusivity, confidentiality, and reduced competition, making them particularly appealing to sellers looking to maintain their privacy and for buyers looking for rare and unique properties.

However, this type of transaction also presents challenges, such as limited access, and potentially higher prices that may restrict the participation of some buyers and sellers. Despite these drawbacks, the demand for “Off Market” sales in Paris continues to grow, fuelled by the city's historical wealth, robust international demand and a well-established network of real estate agents practicing “Off Market” sale.

In the end, the “Off Market” sales play a crucial role in Parisian real estate market, offering a discreet and effective solution for transactions in beautiful apartments. Whether you are a seller looking to avoid public exposure or a buyer looking for a unique property, “Off Market” sales in Paris represent a valuable opportunity to consider. For those interested in this exclusive market, it is essential to surround themselves with experts and develop a solid network to successfully navigate this privileged field.

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